function [v1aut,v2aut,waut]=Autarky(gamma,betta,pi1,pi2,ey1,ey2,eo1,eo2)

v1aut = (utility(ey1,gamma)+betta*(pi1*utility(eo1,gamma)+(1-pi1)*utility(eo2,gamma))); % intertemporal utility in autarky in state 1
v2aut = (utility(ey2,gamma)+betta*(pi1*utility(eo1,gamma)+(1-pi1)*utility(eo2,gamma))); % intertemporal utility in autarky in state 2
waut = pi1*utility(eo1,gamma)+(1-pi1)*utility(eo2,gamma);

end